Monday, May 2, 2011

RadiSys to Acquire Continuous Computing

RadiSys agreed to acquire privately-held Continuous Computing Corporation in a deal valued at up to $120 million in cash and stock. This includes approximately $73 million in cash and 3,666,667 shares of RadiSys common stock. Certain performance-based earn-out payments are also part of the deal.

Continuous Computing develops ATCA-based communications systems and is also known for its Trillium protocol software, as well as its SW Professional Services for network equipment suppliers. Key customer applications include 3G and 4G Wireless infrastructure, Small Cell base stations, Traffic Management, Internet Offload and Network Security.

RadiSys is a leading supplier of hardware and software platforms for network equipment vendors. Its products include ATCA and IP Media Server platforms, as well as application software for new IP-based communications services. These products enable Targeted segments include 3G/4G/LTE wireless voice, data and video, Femtocell,
VoIP and Video over IP communications and conferencing, Voice Quality Enhancement (VQE), and secure defense

The companies cited a number of strategic drivers for the merger, including a shared technology vision centered on ATCA, a common customer base of network equipment suppliers, and expanding opportunities in the wireless, especially LTE, femtocells and deep packet inspection (DPI) appliances. The broadened product portfolio and the Trillium software will benefit the customers.

After the deal closes, the companies will make the following leadership changes. Mike Dagenais, Continuous Computing President and CEO, will become RadiSys' Chief Executive Officer. Brian Bronson, current Chief Financial Officer of RadiSys will become RadiSys' President and Chief Financial Officer. Scott Grout, current President and Chief Executive Officer of RadiSys will become Vice Chair of the RadiSys Board of Directors.

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